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E&P Executive Breakfast Insights: Strategy, Budgets, and the Impact on Decision Making

3esi-Enersight recently held an executive breakfast event for a cross section of planning executives from across the oil and gas industry. This invitation-only event was attended by representatives from the super majors, as well as large and small independents, and was facilitated by the 3esi-Enersight Strategic Consulting team. Leaders came together to take part in an open discussion on how a Strategy-led Budget or a Budget-led Strategy impacts decision-making across an organization.

Strategy-led budgeting is the ideal, but…

The group shared insights related to their strategic planning and budgeting process. Not surprisingly, the consensus was that a strategy-led budget is the ideal and right way to run an organization. However, this process is often inverted and strategy simply becomes the by-product of week-to-week decision making. The group discussed several internal and external factors that can drive this, providing understanding about the challenges they face, and ways organizations are taking steps to mitigate them.

External Pressures

With a multitude of stakeholders, many of whom are focused on short-term performance, companies are finding themselves concentrating on quarter to quarter results. This can make it extremely difficult to focus on what’s needed for long-term, strategic success. The pressure increases with volatile commodity prices, as the questions from Wall Street are never ending, and always changing.

Internal Disconnects

Strategy and budgeting for execution are often disconnected due to technology factors, culture, and process. For instance, in many organizations, corporate planning needs to improve their understanding of what is achievable operationally. In other organizations, executives that come from the execution side of the house may be used to focusing almost exclusively on the day-to-day operational decisions and can have a hard time “staying out of the weeds.” This reactive decision making can create significant problems for long-term profitability and even survival.

Everyone agreed in today’s world, we need better decisions, faster. 

To learn more about how the 3esi-Enersight Strategic Consulting Group is helping E&P companies develop clear strategic intent to drive tactics and execution, visit the Strategic Consulting page.

About the author

As a Principal Consultant at 3esi-Enersight, Lillian brings more than 20 years of strategic consulting experience to client engagements. She has extensive experience designing and deploying complex systems that affect business processes, culture and information technology.

Before joining 3esi-Enersight, Lillian was Vice President of Corporate Development and an executive consultant at Portfolio Decisions. During her 14 year tenure there, she focused on executive facilitation, process review and improvement, and communications planning.

Lillian holds a BA and an MBA from the University of Tennessee and has pursued graduate-level studies in Art History at the University of Toulouse, France. Learn more about Lillian and the rest of the Strategic Consulting team here.

About the Executive Breakfast series

3esi-Enersight is proud to be the host of the Executive Breakfast Series: morning events held throughout the year for industry executives and those who support them in decision-making.

These invite-only events are designed to be valuable to senior industry executives both for their relevant content and as a networking opportunity with industry peers. Each breakfast features informal discussions led by a panel of industry executives and moderated by a senior member of the 3esi-Enersight Strategic Consulting Group. Following the panel discussion, there is time for Q&A and open dialogue between all attendees.

To request an invitation to the next Executive Breakfast please contact Brittany Bluestein, Brittany.bluestein@3esi-Enersight.com